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Quintis Ltd shares to remain suspended until February

It has been a staggering eight months since the Quintis Ltd (ASX: QIN) share price was last active on the share market.

And unfortunately for its many disgruntled shareholders, it looks like it will be at least another month until they have an opportunity to jump ship.

In late November the embattled sandalwood plantation manager advised that it expected to come out of its voluntary suspension today (January 15), but according to an announcement released this morning, this is not expected to be the case now until February 15.

This is due to ongoing discussions with more than one party in relation to potential debt and equity transactions that would have the effect of achieving a recapitalisation of the company.

Management believes that the reinstatement of trading in the company’s shares before the completion of these transactions could potentially mean that the market would not be trading on an informed basis.

Furthermore, as part of the transactions involve equity elements, the company is concerned that share price volatility could materially prejudice the capacity to conclude these transactions.

Which I think is reasonably fair considering failure to negotiate and complete the transactions could threaten its continued solvency.

However, it is still a bitterly disappointing situation for shareholders. Not only have they seen their holdings lose significant value, but they have been unable to get this money out to reinvest elsewhere in the market.

But they are not alone. The shares of Henry Morgan Limited (ASX: HML) have also been suspended since early June.

Whenever the two aforementioned shares do return to the market, I would suggest that investors stay well clear of them.

Instead, investors might want to consider shares such as Aristocrat Leisure Limited (ASX: ALL) and Ramsay Health Care Limited (ASX: RHC) which have strong management teams, growing businesses, and the potential to provide market-beating returns over the long-term.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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